The Central District of California granted summary judgment in UMG Recordings, Inc. v. Troy Augusto, No. CV 07-03106. (SJO), regarding the legality of reselling promo CDs. Mr. Augusto acquired promo CDs and resold them on eBay, which Universal alleged infringed their copyright due to the following language placed on the CDs:
This CD is the property of the record company and is licensed to the intended receipient for personal use only. Acceptance of this CD shall constitute an agreement to comply with the terms of the license. Resale or transfer of possession is not allowed and may be punishable under federal and state laws.
Augusto argued that his resale of the CDs was protected under the first sale doctrine. The court agreed.
Finally, a voice of reason in the wilderness. Thank you Judge Otero for a very well written opinion.
Here is the full opinion (pdf).
Filed under: 2008 Copyright Cases, Copyright, First Sale Doctrine, Infringment Cases
